Independent Standard-Setting Boards

The International Auditing and Assurance Standards Board sets high-quality international standards for auditing, assurance, and quality control that strengthen public confidence in the global profession.

The International Accounting Education Standards Board establishes standards, in the area of professional accounting education, that prescribe technical competence and professional skills, values, ethics, and attitudes.

The International Public Sector Accounting Standards Board develops standards, guidance, and resources for use by public sector entities around the world for preparation of general purpose financial statements.

Small and Medium Practices

Small- and medium-sized practices (SMPs) are a critically important part of the profession: they constitute the vast majority of accountancy practices worldwide and, in many areas of the world, are believed to employ the majority of professional accountants working in practice. Furthermore, SMPs typically serve small- and medium-sized entities (SMEs), commonly referred to as engines of growth and innovation.

There is no standard definition of what constitutes an SME, but Edinburgh Group research estimates indicate that more than 95% of enterprises across the world are SMEs, accounting for approximately 60% of private sector employment and contributing significantly to countries’ gross domestic product (GDP). SMEs are crucial to the health, stability, and sustainable economic growth of both developed and developing economies.

It is well recognized that professional accountants are often the preferred source of advice for SMEs, typically forming long-term relationships founded on trust. SMPs can provide a range of high-quality professional services to their SME clients, including audit and assurance and expert business advisory services.

IFAC supports this critical sector through a number of initiatives to raise the profile and build the capacity of SMPs globally. With input and guidance from the SMP Committee, IFAC represents SMPs’ interests to standard setters and regulators, facilitates the sharing of tools and resources to help them compete in the global marketplace, and speaks out to raise awareness of their role and value, especially in supporting SMEs.

SPOTLIGHT ON

IFAC Releases Global SMP Survey Report

We’ve tallied the responses from 5,083 SMPs around the world. Findings include general optimism about the year ahead, and advisory is increasingly important to SMPs’ revenue growth. Conducted annually, the Global SMP Survey provides unique insights into the challenges and opportunities facing SMPs around the world. A huge thank you to the IFAC member organizations and other bodies that helped promote.

The IAASB is conducting the survey in connection with its new quality control initiative and calls on SMPs, in particular, to help identify challenges in complying with the requirements of International Standard on Quality Control (ISQC) 1 and International Standard on Auditing (ISA) 220.

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